A Look at EUR/USD and EUR/GBP ahead of the ECB Event

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A Look at EUR/USD and EUR/GBP ahead of the ECB Event

ECB on Tap

Tomorrow (10/2) the ECB will conclude its monetary policy meeting, release an official statement and follow up with a press conference with bank prez, Mario Draghi. Let’s take a look at the EUR/USD and EUR/GBP ahead of this key event risk.

The EUR/USD is consolidating between 1.2571 and 1.2640. If price can break and hold above 1.27 after the ECB, we might be building a price bottom for a bullish correction. A break above 1.2715 would be an even stronger sign of bullish correction. Otherwise, there is still downside risk if price holds below 1.27. EUR/GBP is in a consolidation range between 0.7766 and 0.7785. Now if price can hold above 0.7830 after the ECB event, there could be a price bottom and a bullish correction. Otherwise, if price holds or returns quickly below 0.78, there is downside risk back to 0.7765. 0.7764 is the 2012-low, and a break below that opens up a 4 year low, and Oct. 2010 low in the 0.7693-0.77 area

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.